As part of the 2014 Autumn Statement the Chancellor vowed to tackle the misuse of umbrella companies. During his speech he stated “We are also consulting on other measures including the use of so called ‘umbrella companies’ to deprive people of basic employment rights like the minimum wage and avoid tax.”
This announcement was not entirely unexpected following the introduction of the intermediaries’ legislation on false employment earlier this year. However, little detail was given as to the government’s proposals.
Ploughing through the 100 plus pages in the full Autumn Statement document did not provide much more enlightenment on the subject. However, it did confirm that HMRC will be reviewing arrangements whereby temporary workers benefit from tax relief for travel expenses on home to work travel.
For now it is a case of ‘wait and see’ until the consultation document is released and full details can be read. This is expected shortly and it is anticipated that any proposed changes could be introduced as early as April 2015. We will provide an update once further information is available, but if you have any questions in the meantime please do get in touch with Andy Brookes.